Innodata soars after company boosts full-year sales guidance, delivers impressive Q1 results
Innodata is surging in premarket trading after announcing better-than-expected quarterly results and raising its full-year sales guidance.
The data engineering company is seemingly benefiting from demand for its expertise to help improve the capabilities of AI tools.
The key numbers for Q1:
Revenue of $90.1 million (compared to analyst estimates of $76.5 million).
Adjusted EBITDA of $25.0 million (estimate: $10.4 million).
Innodata raised its full-year revenue growth guidance to around 40% or more, up from the ~35% or more guidance it gave out 10 weeks ago.
CEO Jack Abuhoff described this outlook as “prudent,” adding that several potentially large programs have not yet been included in this forecast.
To that end, he noted a new set of engagements with a large technology company that, if solidified, would generate approximately $51 million of revenue in 2026. Management is currently in discussions with an additional 15 companies and two hyperscalers about its new platform for agentic systems, Abuhoff added.
Earlier this year, this company announced a pact to provide data and data engineering services to Palantir to help improve AI tools that analyzed rodeos.
The robust quarter and outlook are bringing shares of Innodata back into the green on the year after having been down 10% heading into this report.
